Suspicious operations report - Guideline applicable from 01.04.2021 - Guideline applicable from ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Suspicious operations
report
Guideline applicable from 01.04.2021
Version 2.1 of 01.04.2021
This document, applicable for all professionals subject to the AML/CFT Law, replaces the FIU guideline of
01.11.2018 on the suspicious operations report.
Office: Postal Address: Phone : (+352) 47 59 81-2447
41B boulevard Franklin D. Roosevelt L-2080 Luxembourg Email : plcrf@justice.etat.lu
L-2450 Luxembourg Web Page : www.crf.luTABLE OF CONTENT
1 Introduction ........................................................................................................................................ 2
2 Who must report suspicious operations? ........................................................................................... 2
3 What is a suspicious operation? ......................................................................................................... 4
3.1 Grounds for suspicion .............................................................................................................. 4
3.1.1 Money laundering ............................................................................................................................. 5
3.1.2 Terrorist financing ............................................................................................................................. 5
3.2 Committed or attempted offence ............................................................................................ 6
4 How to make a suspicious transaction report? .................................................................................. 6
4.1 Prior registration with goAML Web ......................................................................................... 7
4.2 Registration of a report ............................................................................................................ 7
4.2.1 Online reporting................................................................................................................................ 7
4.2.2 Downloading an XML ........................................................................................................................ 7
5 How to reply to a request for information by the FIU? ...................................................................... 7
6 Rights and obligations of the reporting entity .................................................................................... 8
6.1 Communication ban ................................................................................................................. 8
6.2 Outcome of the business relationship ..................................................................................... 9
6.3 Immunity .................................................................................................................................. 9
6.4 Confidentiality .......................................................................................................................... 9
6.5 Penalties for non-compliance .................................................................................................. 9
7 How to identify a suspicious operation ............................................................................................ 10
7.1 Methodology .......................................................................................................................... 10
7.2 Indicators of suspicion ........................................................................................................... 10
8 Can the FIU authorise transactions? ................................................................................................. 11
9 Does the FIU need to be notified of subsequent transactions? ....................................................... 11
Version 2.1 of 01.04.2021 | Introduction 11 INTRODUCTION
Pursuant to the law of 12 November 2004 on the fight against money laundering and terrorist financing, as
amended (“AML/CFT Law”), professionals, their directors, officers and employees are obliged (1) to cooperate
fully with the Luxembourg authorities responsible for combating money laundering and terrorist financing and
(2) to inform without delay, on their own initiative, the Financial intelligence unit (“FIU”) when they know,
suspect or have reasonable grounds to suspect that money laundering, an associated predicate offence or
terrorist financing is being committed, has been committed or attempted.
All suspicious transactions, including attempted transactions, must be reported, regardless of the amount of the
transaction1.
If you are one of the persons or entities falling within the scope of the AML/CTF Law, this guideline can assist
you in meeting your obligations to report suspicious operations to the FIU.
This guideline is for informational purposes only. It does not contain any legal advice, nor does it replace the
relevant laws and regulations.
2 WHO MUST REPORT SUSPICIOUS OPERATIONS?
If you are a person or entity known as “professionals subject to the AML/CTF Law”, as listed hereafter, or if you
are director or employee of such a person or entity, you are obliged to report suspicious operations to the FIU:
1. credit institutions and professionals of the financial sector (PFS) licensed or authorised to exercise their
activities in Luxembourg in accordance with the Law of 5 April 1993 on the financial sector, as amended,
and payment institutions and electronic money institutions licensed or authorised to exercise their
activities in Luxembourg in accordance with the Law of 10 November 2009 on payment services,
as well as tied agents as defined in Article 1 of the Law of 5 April 1993 on the financial sector, as
amended, and agents as defined in Article 1 of the Law of 10 November 2009 on payment services, as
amended, established in Luxembourg;
1a. the natural and legal persons benefiting from the waiver in accordance with Article 48 or 48-1 of the Law
of 10 November 2009 on payment services;
2. insurance undertakings licensed or authorised to exercise their activities in Luxembourg in accordance with
the Law of 7 December 2015 on the insurance sector, as amended, in connection with operations covered
by Annex II of the Law of 7 December 2015 on the insurance sector, as amended, and insurance
intermediaries licensed or authorised to conduct business in Luxembourg in accordance with the Law of 7
December 2015 on the insurance sector, as amended, when they act in respect of life insurance and
other investment related services;
2a. the professionals of the insurance sector authorised to carry out their business in Luxembourg
pursuant to the Law of 7 December 2015 on the insurance sector, as amended;
3. pension funds under the prudential supervision of the Commissariat aux assurances;
4. undertakings for collective investment and investment companies in risk capital (SICAR), which market
their units, securities or partnership interests and to which the Law of 17 December 2010 relating to
undertakings for collective investment, as amended, or the Law of 13 February 2007 relating to specialized
investment funds or the Law of 15 June 2004 relating to the Investment company in risk capital (SICAR)
applies;
1 Art. 5 (1) a) 2nd paragraph AML/CFT Law.
Version 2.1 of 01.04.2021 | Introduction 25. management companies under the Law of 17 December 2010 relating to undertakings for collective
investment, as amended, and alternative investment fund managers governed by the Law of 12
July 2013 on alternative investment fund managers, as amended ;
6. pension funds under the prudential supervision of the Commission de Surveillance du Secteur
financier;
6a. managers and advisors of undertakings for collective investment, investment companies in risk capital
(SICAR) and pension funds;
6b. securitisation undertakings, when they perform trust and company service provider activities;
6c. insurance and reinsurance undertakings and their intermediaries whenever they perform credit and surety
operations;
6e. any person carrying out the Family Office activity within the meaning of the Law of 21 December
2012 relating to the Family Office activity;
7. the other financial institutions carrying out their activities in Luxembourg;
8. réviseurs d’entreprises (statutory auditors), réviseurs d’entreprises agréés (approved statutory
auditors), cabinets derévision (audit firms) and cabinets de révision agrees (approved audit firms)
within the meaning of the Law of 23 July 2016 concerning the audit profession, as amended;
9. accountants, within the meaning of the Law of 10 June 1999 on the organisation of the accounting
profession;
9a. accounting professionals, within the meaning of Article 2(2)(d) of the Law of 10 June 1999 on the
organisation of the accounting profession;
10. real estate agents, within the meaning of the Law of 2 September 2011 regulating the access to the
professions of craftsman, salesman, industrial as well as to some liberal professions, as amended,
established or acting in Luxembourg, including when acting as intermediaries in the letting of immovable
property, but only in relation to transactions for which the monthly rent amounts to EUR 10,000 or more;
10a. real estate developers within the meaning of the Law of 2 September 2011 regulating the access to the
profession of craftsman, salesman, industrial as well as to some liberal professions, as amended,
established or acting in Luxembourg, including when they are, in their capacity as intermediary, involved
in purchase and sale transactions of immovable property;
11. notaries, within the meaning of the Law of 9 December 1976 on the organisation of the profession of notary,
as amended;
11a. bailiffs within the meaning of the Law of 4 December 1990 on the organisation of bailiffs, as amended,
where they carry out valuation and public sales of furniture, movables and harvests;
12. lawyers, within the meaning of the Law of 10 August 1991 on the legal profession, as amended,
when:
(a) assisting in the planning or execution of transactions for their customer concerning the:
(i) buying and selling of real property or business entities,
(ii) managing client money, securities or other assets,
(iii) opening or management of bank, savings or securities accounts,
(iv) organisation of contributions necessary for the creation, operation or management of companies,
(v) creation, domiciliation, operation or management of trusts, companies or other similar structures,
Version 2.1 of 01.04.2021 | Who must report suspicious operations? 3(b) or acting for and on behalf of their customer in any financial or real estate transaction;
(c) or providing a service of a trust and company service provider;
(d) or carrying out the activity of Family Office.
13. persons other than those listed above who:
(a) exercise in Luxembourg by way of their business, an activity of tax advice;
(b) exercise in Luxembourg, by way of their business, one of the activities described in point (12)(a) and (b),
or
(c) undertake to provide, directly or by means of other persons to which they are related, material aid,
assistance or advice on tax matters as principal business or professional activity;
13a. persons other than those listed above who exercise on a professional basis in Luxembourg a trust and
company service provider activity;
14. providers of gambling services governed by the Law of 20 April 1977 on gaming and betting on sporting
events, as amended, acting in the exercise of their professional activities;
14a. operators in a free zone authorised to carry out their activity pursuant to an authorisation by the
Administration des douanes et accises (customs and excise) within the Community control type 1 free zone
located in the municipality of Niederanven Section B Senningen called Parishaff L-2315 Senningerberg
(Hoehenhof);
15. other persons trading in goods, only to the extent that payments are made or received in cash in an amount
of EUR 10,000 or more, whether the transactions or series of transactions are executed in a single operation
or in several operations which appear to be linked;
16. virtual asset service providers;
17. safekeeping or administration service providers;
18. persons trading or acting as intermediaries in the trade of works of art, including when this is carried out
by art galleries and auction houses, where the value of the transaction or a series of linked transactions
amounts to EUR 10,000 or more;
19. persons storing, trading or acting as intermediaries in the trade of works of art when this is carried out by
free ports, where the value of the transaction or a series of linked transactions amounts to EUR 10,000 or
more.
In accordance with article 2 paragraph 2 of the AML/CFT Law “The scope of application of this title and hence
the notion of professional also includes branches in Luxembourg of foreign professionals as well as
professionals established under the laws of foreign countries who supply services in Luxembourg without
establishing any branch in Luxembourg.”
3 WHAT IS A SUSPICIOUS OPERATION?
3.1 GROUNDS FOR SUSPICION
A transaction is suspicious when the professional knows, suspects or has reasonable grounds to suspect that
money laundering, an associated predicate offence or terrorist financing is being committed or has been
committed or attempted, in particular in consideration of the person concerned, its development, the origin of
the funds, the purpose, nature and procedure of the operation.
Version 2.1 of 01.04.2021 | What is a suspicious operation? 4Generally speaking, a suspicion can be described as “a negative opinion of someone or of his/her behaviour,
based on hints, impressions, intuitions, but without any specific evidence”2. This means that, no evidence of
money laundering, an associated predicate offence or terrorist financing is required when reporting a suspicion.
All that is needed are circumstances, which would make such a hypothesis likely.
3.1.1 MONEY LAUNDERING
The offence of money laundering and its associated predicate offences, as defined in Article 506-1 of the Penal
Code and Article 8(1)(a) and (b) of law of 19 February 1973 on the sale of medicinal substances and measures to
combat drug addiction, as amended, covers three different types of behaviour:
(1) those who knowingly facilitated, by any means, the misleading justification of the nature, origin, location,
availability, movement or ownership of property, which are referred to in Article 31 paragraph 2, point 1° and
which constitute the direct or indirect purpose or product of one or more primary offences or which constitute
any kind of patrimonial benefit, resulting from one or more of those offences3,
(2) those who knowingly assisted in the placement, concealment, disguise, transfer or conversion of property,
which are referred to in Article 31 paragraph 2, point 1° and which constitute the direct or indirect purpose or
product of one or more primary offences or which constitute any kind of patrimonial benefit, resulting from one
or more of those offences,
3) those who have acquired, held or used property, which are referred to in Article 31 paragraph 2, point 1° and
which constitute the direct or indirect purpose or product of one or more primary offences or which constitute
any kind of patrimonial benefit, resulting from one or more of those offences.
The concept of primary offence refers to all offences enumerated in Article 506-1 of the Penal Code. This list
includes most of the serious offences contained in the Penal Code (for example bankruptcy, corruption,
kidnapping, sexual exploitation, forgery, fraud, murder, human trafficking, theft, etc.) or contained in special
acts of legislation (for example counterfeiting, criminal tax offences, environmental offences, trafficking of illicit
narcotics and psychotropic substances, etc.).
Money laundering is a punishable offence, even when the primary offence was committed abroad4.
Money laundering is a punishable offence, even when the perpetrator is also the perpetrator or accomplice of
the primary offence5.
3.1.2 TERRORIST FINANCING
Article 135-5 of the Penal Code defines the acts of terrorist financing as “the direct or indirect, unlawful and
deliberate provision or collection by any means whatsoever of funds, securities or property of any kind, with the
intention that they will be used or with knowledge that they will be used, in whole or in part, to commit or
attempt to commit one or more of the offences referred to in paragraph (2) of that of the present Article, even
if they have not actually been used to commit or attempt to commit any of these offences or if they are not
linked to one or more specific terrorist acts”6.
2 Le Larousse.
3 The property, referred to in Article 31 paragraph 2, point 1° of the Penal Code, covers property of any kind, whether
corporeal or incorporeal, movable or immovable, as well as legal acts or documents evidencing the title to or a right to such
an asset, property constituting the direct or indirect purpose or product of an offence or constituting any kind of patrimonial
benefit, resulting from an offence, including the income generated from such assets.
4 Art. 506-3 Penal Code.
5 Art. 506-4 Penal Code.
6 Paragraph (2) of the article refers to Articles 112-1 (attacks against persons enjoying international protection), 135-1 to
135-4 (terrorist offences), 135-9 (terrorist attacks using explosives), 135-11 to 135-13 (offences related to terrorist activities)
and 442-1 (hostage taking) of the Penal Code, Articles 31 and 31-1 of the Law of 31 January 1948, as amended, on the
Version 2.1 of 01.04.2021 | What is a suspicious operation? 5The obligation to report suspicious operations also applies to funds where there are reasonable grounds to
suspect or they are suspected to be linked or related to, or to be used for terrorism, terrorist acts, by a terrorist
or terrorist groups or by those who finance terrorism. 7
3.2 COMMITTED OR ATTEMPTED OFFENCE
Suspicion may relate to a money laundering, an associated predicate offence or a terrorist financing operation
that has already been committed or that has only been attempted.
Money laundering, an associated predicate offence or terrorist financing has been committed once the
suspicious operation has taken place. This is the case when the suspicion only arises after the operation has
been committed, due to circumstances that were unknown at the time of the operation. It is important that you
refrain from carrying out transactions of which you know, suspect or have reasonable grounds to suspect to be
related to money laundering, to an associated predicate offence or to terrorist financing until you have informed
the FIU.8.
An acknowledgement of receipt of your suspicious transaction reports and responses to information request9 is
generated by goAML and send to you via the message board, usually around midnight. From this moment on,
as long as you have not received a freezing order from the FIU10, you can decide, under your own responsibility,
to execute the transactions referred to in your communications, as well as any other subsequent non-suspicious
transaction.
There is an attempt to launder money, an associated predicate offence or finance terrorism when the client or
prospective client has the intent to actually launder money, commit an associated predicate offence or finance
terrorism, and takes a substantial step toward completing this offence, but for reason beyond its control, in
particular due to the diligence of the professional, the final resulting offence does not occur. A simple request
for information on the terms and conditions of an operation or business relation does not mean an offence has
been attempted; an offence has only been attempted, once a substantial step toward the completion of the
offences has been executed. A substantial step goes beyond the mere preparation to commit the offence and
requires that concrete measures, allowing the client or prospective client to move towards the successful
completion of the offence, are implemented, such as entering into business negotiations, making a transfer
order, setting up a legal arrangement, etc.
4 HOW TO MAKE A SUSPICIOUS TRANSACTION REPORT?
If you know, suspect or have reasonable grounds to suspect an operation to be related to money laundering, an
associated predicate offence or terrorist financing, regardless of whether such operation has only been
attempted or already executed, you are obliged to file a report with the FIU without delay11. To do so, you must
first register as a reporting entity on the FIU's goAML Web application and designate at least one compliance
officer. Only then can you save your report.
Regulation of Air Navigation, Article 2 of the Law of 11 April 1985, as amended, approving the Convention on the Physical
Protection of Nuclear Material, opened for signature in Vienna and New York on 3 March 1980, and Article 65 -1 of the Law
of 14 April 1992, as amended instituting a disciplinary and penal code for the navy.
7 Art. 5 (1bis) AML/CFT Law.
8 Art. 5 (3) AML/CFT Law.
9 The feedback form without/with transactions (RIRA or RIRT code) is to be used when responding to an FIU request.
10 Freezing order means the ability of the FIU, pursuant to Article 5 (3) to “give instructions not to carry out the operations
relating to the transaction or the customer”.
11 Art. 5 (1) (a) AML/CFT Law.
Version 2.1 of 01.04.2021 | How to make a suspicious transaction report? 64.1 PRIOR REGISTRATION WITH GOAML WEB
If you are a person or entity referred to in Article 2 of the AML/CFT Law (see paragraph 2 above) you are entitled
to register on goAML Web as a reporting entity.
To find out more about registering as a reporting entity, please visit our website https://faq.goaml.lu/.
As soon as your application is validated by the FIU, you will receive a confirmation email with your account
information. The identification number provided by the FIU then allows other persons of your entity (e.g.
compliance officer) to register as user of the reporting entity.
To find out more about registering additional users, please visit our website https://faq.goaml.lu/.
4.2 REGISTRATION OF A RE PORT
Once registered on goAML Web, you are able to file your suspicious operation reports. To do so, you have the
choice between filling out an online report or downloading XML files. The different types of forms offered on
goAML Web allow you to distinguish between money laundering and terrorist financing and between reports
that do [suspicious transaction report (STR)] and reports that do not contain suspicious transactions [suspicious
activity report (SAR)]. The forms include mandatory fields, marked with an asterisk, and optional fields, that we
ask you to fill out if you possess the relevant information.
4.2.1 ONLINE REPORTING
If you only make few reports or if your reports contain few or no financial transactions, you can opt for online
reporting.
To learn more about our online forms, please visit our website https://faq.goaml.lu/.
4.2.2 DOWNLOADING AN XML
Manual encoding of financial transactions can quickly become tedious. If you regularly make reports or if your
reports contain a lot of financial transactions, we recommend you to update your IT systems, which will enable
you to directly export the relevant data from your computer system to an XML file, which can then be imported
into goAML Web.
To learn more about downloading XML files, please visit our website https://faq.goaml.lu/.
5 HOW TO REPLY TO A REQUEST FOR INFORMATION BY THE FIU?
Even if you did not file a report, the FIU is entitled to ask you for information 12. You must respond, without
delay, to a request for information issued by the FIU by using the “feedback” forms, available on goAML Web.
You can fill them out online or download an XML file (see sub 4.2 above). If you have not yet done so, please
register in advance (see section 4.1 above) to be able to respond to the request for information.
Depending on the complexity and scope of research required, you should respond to any request for information
issued by the FIU within a fortnight. However, if a request for information is described as “very urgent”,
especially when dealing with terrorist financing, you should respond within 24 hours. A request for information
described as “urgent” should be processed within a week.
12 Art. 5 (1) (b) AML/CFT Law.
Version 2.1 of 01.04.2021 | How to reply to a request for information by the FIU? 76 RIGHTS AND OBLIGATIONS OF THE REPORTING ENTITY
6.1 COMMUNICATION BAN
Under no circumstances should you disclose to anyone, including your customer, the fact that information is
being, will be or has been reported or provided to the authorities in accordance with paragraphs 1, 1a, 2 and 3
of article 5 of the AML/CFT Law or that a money laundering or terrorist financing investigation by the FIU is being
or may be carried out13. You must not reveal, under threat of criminal sanctions, the existence of a suspicious
operation report relating to money laundering, an associated predicate offence or terrorist financing or of a
request for information issued by the FIU. Unless expressly authorised by the FIU, you are not permitted to
inform your customer of a freezing order issued by the FIU.
However, this prohibition does not apply to a disclosure to the supervisory authorities (Commissariat aux
assurances, Commission de surveillance du secteur financier and Administration de l’enregistrement et des
accises) or, if appropriate, the self-regulatory bodies of the different professionals (Chambre des notaires,
Institut des réviseurs d’entreprise, Ordre des avocats and Ordre des experts comptables, chamber des huissiers
de justice)14.
The prohibition shall not apply either to disclosure between the credit institutions and financial institutions of
Member States, provided that they belong to the same group, or between those institutions and their branches
and majority-owned subsidiaries located in third countries and provided that those branches and majority-
owned subsidiaries fully comply with the group-wide policies and procedures, including procedures for sharing
information within the group, in accordance with Article 4-1 or Article 45 of Directive (EU) 2015/849, and that
the group-wide policies and procedures comply with the requirements laid down in this law or in Directive (EU)
2015/84915.
The prohibition shall further not prevent the disclosure between the professionals referred to in points (8), (9),
(11), (12) and (13) of Article 2(1) (listed above), from Member States or from third countries which impose
requirements equivalent to those laid down in the AML / CTF law or in Directive (EU) 2015/849, who perform
their professional activities, whether as employees or not, within the same legal person or a network16. 17
For credit and financial institutions and the professionals referred to in points (8), (9), (11), (12) and (13) of
Article 2(1), in cases involving the same person concern and the same transaction involving two or more
professionals, the prohibition shall not prevent disclosure between the relevant professionals provided that they
are situated in a Member State, or in a third country which imposes requirements equivalent to those laid down
in the AML / CFT law or in Directive (EU) 2015/849 and that they are from the same professional category and
are subject to equivalent obligations as regards professional secrecy and personal data protection. The
information exchanged must be used exclusively for the purposes of the prevention of money laundering and
terrorist financing. 18
Where the professionals referred to in points (8), (9), (11), (12) and (13) of Article 2(1), seek to dissuade a
customer from engaging in illegal activity, this shall not constitute a disclosure within aforementioned meaning.
13 Art. 5 (5) (1) AML/CFT Law.
14 Art. 5 (5) (2) AML/CFT Law.
15 Art. 5 (5) (3) AML/CFT Law.
16 A “network” shall mean the larger structure to which the person belongs and which shares common ownership,
management and compliance control.
17 Art. 5 (5) (4) AML/CFT Law.
18 Art. 5 (5) (5) AML/CFT Law.
Version 2.1 of 01.04.2021 | Rights and obligations of the reporting entity 8Information on suspicions that funds are the proceeds of money laundering, of an associated predicate offence
or are related to terrorist financing reported to the FIU shall be shared within the group, unless otherwise
instructed by the FIU19.
6.2 OUTCOME OF THE BUSINESS RELATIONSHIP
No provision of the AML/CFT law requires the termination of the business relationship with the client, even if
you have or intend to report a suspicious operation. This decision is entirely up to you. Of course, you have the
right to communicate with your client within the framework of the usual business relationship; however you
must not mention the existence of a suspicious operation report or a request for information issued by the FIU.
6.3 IMMUNITY
No civil, criminal or administrative proceedings may be brought against you, if you made a bona fide suspicious
operation report to the Luxembourg authorities responsible for combating money laundering and the financing
of terrorism20 or, if you are a lawyer, to the relevant President of the Bar Association (bâtonnier de l’Ordre des
avocats)”. Reports, information and documents supplied by you to the FIU cannot be used against you in case
of legal action for breach of professional obligations21.
6.4 CONFIDENTIALITY
The identity of the professionals, managers and employees who made a suspicious operation report or who
provided information to the FIU, is kept confidential by the aforementioned authorities, unless disclosure is
essential to ensure the regularity of legal proceedings or to establish proof of the facts forming the basis of these
proceedings22.
Whenever possible, the FIU will not disclose to a foreign counterpart or national prosecutor (1) whether the
information came from a suspicious operation report, submitted by a professional, or from a request for
information by the FIU, nor (2) the identity of the professional who provided said information.
6.5 PENALTIES FOR NON-COMPLIANCE
Criminal sanctions may be imposed for violation of your professional obligations, particularly with regard to the
reporting of suspicious operations. Failure to file a suspicious operation report or to respond to a request for
information issued by the FIU is punishable by a fine, ranging from EUR 12 500 to EUR 5 000 00023.
The same penalties could be applied if you disclose, in any way, the existence of a suspicious operation report,
a request for information issued by the FIU or, without authorisation from the FIU, the existence of a freezing
order.
The supervisory and sanctioning powers of the supervisory authorities, and more recently those of the self-
regulatory bodies, have been considerably extended in recent years and a whole range of sanctions and other
measures can now be imposed by the latter in the event of failure to comply with the professional obligations
laid down by the AML / CFT law.24
19 Art. 5 (5) (6) AML/CFT Law.
20 Art. 5 (4) AML/CFT Law.
21 Art. 5 (4bis) AML/CFT Law.
22 Art. 5 (5) (b), 2) AML/CFT Law.
23 Art. 9 AML/CFT Law.
24 Section I, chapter 3-1 of the AML / CFT law.
Version 2.1 of 01.04.2021 | Rights and obligations of the reporting entity 97 HOW TO IDENTIFY A SUSPICIOUS OPERATION
7.1 METHODOLOGY
A suspicion of money laundering, an associated predicate offence or terrorist financing may arise due to identity
of the person concerned, due to the development of the operation, due to the origin of the funds, due to the
nature, purpose or procedure of the operation. Reporting a suspicious transaction has no minimum monetary
threshold. Several factors should be taken into account, which individually may seem irrelevant, but can
generate doubts on the veracity of the operation when combined. In general, any transaction or financial
operation, whether only attempted or already executed, that raises questions or provokes a feeling of
discomfort, worry or suspicion, could potentially be linked to money laundering, an associated predicate offence
or terrorism financing.
It is good practice to use indicators to identify and assess a possible link to money laundering, an associated
predicate offence or terrorism financing. The report forms on goAML Web suggest a set of indicators. To justify
your suspicion, you must tick one or more of these indicators, but you may also add any other indicator that you
deem pertinent.
The context of an operation or transaction is vital when debating on whether your doubts are well-founded. This
context will vary from one company to another and from one client to another. You must judge the merits of an
operation or of a transaction, while taking into account what seems to be appropriate under the circumstances
and also what seems to be in line with the standard business practices of your sector, not to mention the
knowledge you have of your client. The fact that operations or transactions do not seem to comply with the
standard business practices of your sector may be a determining factor in establishing the motives behind your
suspicion.
The analysis of your suspicion should include a reasonable assessment of the relevant factors, including your
level of knowledge of the client's business affairs, his financial history, his behaviour and the context of the
operation. Sometimes, when taking several indicators into account, and not just one, you can conclude that you
have reasonable grounds to suspect an operation or a transaction is related to money laundering, an associated
predicate offence or terrorist financing.
7.2 INDICATORS OF SUSPICION
Indicators will help you detect a potential offence of money laundering, an associated predicate offence or
terrorist financing and confirm your doubts. The suspicion may only be based on one indicator, which appears
particularly relevant due to the context, or may be based on a combination of several indicators, which together
render the hypothesis of money laundering, an associated predicate offence and terrorist financing probable.
Please find bellow the list of indicators suggested by goAML.
As mentioned above, you must tick one or more of these indicators when filing a report or you may also add any
other indicator that you deem relevant.
Suspicious cash transactions
Unusual behaviour of the customer
Suspicious transaction pattern
Use of forged documents
Economic background of the account user
Open source indications and information
PEPs
Sanctions
Version 2.1 of 01.04.2021 | How to identify a suspicious operation 10Phishing/pharming
Fraudulent transaction
Transactions to/from high risk countries
Use of front persons/companies
Offshore based companies
Transactions exceeding 10.000 EUR
Structuring
Amount of transfer
Frequent transactions and in small amounts (smurfing)
Frequent transactions and in large amounts
Use of money service businesses to remit funds
Use of informal networks to remit funds (hawala type)
Transactions via correspondent banks
Use of Clearing Accounts
Transactions to Shell Banks
Fund remittances to NGOs
Use of electronic money, mobile payment or payment online
Use of prepaid bank cards
Non-respect of AML/TF obligations by client
Reluctance to provide KYC/KYT documentation
Beneficial ownership issues
Inconsistencies regarding the KYC/KYT documentation
Inconsistencies regarding the business activity
Inconsistencies regarding the economic origin of funds
Involvement of minors
Link to dark web
Use of virtual assets
8 CAN THE FIU AUTHORISE TRANSACTIONS?
No, the FIU does not provide authorisations to carry-out specific transactions, nor does it express any opinion
on the legality or suitability of said transaction. The professional is solely and exclusively liable for any transaction
executed by him. We ask you not to contact the FIU the purpose of seeking the authorisation to execute a given
transaction. Where a transaction raises questions or provokes a feeling of discomfort, worry or suspicion, you
must examine the transaction within its context, keeping in mind the standard business practices of your sector
and the knowledge you have of your client, in order to evaluate whether your doubts are founded. If your
suspicions persist, you must immediately inform the FIU via a report.
9 DOES THE FIU NEED TO BE NOTIFIED OF SUBSEQUENT TRANSACTIONS?
The FIU does not need to be informed of subsequent transactions, provided they are not suspicious. If they
appear suspicious to you in any way, you should immediately inform the FIU via a new report.
Version 2.1 of 01.04.2021 | How to identify a suspicious operation 11You can also read
